GREENSBORO – Chip maker Quorvo is launching a $1 billion share buyback plan after the Greensboro-based firm beat Wall Street expectations in its latest financial report Thursday and also pointed out growing demand for its products in 5G wireless devices.
“Qorvo delivered another solid quarter, as our technology investments, portfolio management, and operational discipline continued to yield strong and consistent performance,” said Bob Bruggeworth, Qorvo’s CEO.
“Qorvo [QRVO] delivered another solid quarter, as our technology investments, portfolio management, and operational discipline continued to yield strong and consistent performance. We are especially pleased with 5G design activity and the trends we see toward increasing RF [radio frequency] integration.”
Qorvo also sees growth in revenues, forecasting as much as $860 million this quarter.
“Qorvo’s December quarter guidance reflects continued robust mobile demand supported by an increase in 5G handset volumes.,” noted Mark Murphy, chief financial officer.
“Separately, as a result of our market outlook, operating performance and free cash flow forecast, Qorvo’s Board of Directors has approved a new $1 billion share repurchase authorization.”
Qorvo reported net income of 70 cents per share. Earnings, adjusted for amortization costs and stock option expense, were $1.52 per share.
The results beat Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of $1.30 per share.
The chipmaker posted revenue of $806.7 million in the period, which also beat Street forecasts. Six analysts surveyed by Zacks expected $754.4 million.
For the current quarter ending in January, Qorvo expects its per-share earnings to be $1.67.
Qorvo shares have risen 33% since the beginning of the year. In the final minutes of trading on Thursday, shares hit $80.70, a rise of almost 10% in the last 12 months.